Production and packing

Production in this app covers bounded conversion work: packing bulk cement into bags, assembling kits, or any other output made from listed components. A bill of materials version states the output product and the output base quantity it describes, and BOM components list each component with its base quantity, planned scrap percentage and instruction. Routings attach to a bill of materials and list routing operations in sequence, with labour rate per hour, overhead basis and the operation that marks terminal output.

A work orders record freezes the bill of materials, routing, output product, output standard cost from cost standards, planned quantity, warehouse and responsible manager. Kiln operation, raw-mix control, plant scheduling and laboratory testing are outside the app.

• Release as a decision. A work order moves from pending approval to Released only with an active bill of materials and routing, an output product and standard, a positive planned quantity and manager evidence. The Warehouse Manager records the production release decision.
• Record what actually happened. work order operations are assigned to people, and production log entries record good quantity, scrap quantity and labour hours for each operation. Intermediate counts do not add up to output; only the terminal operation produces finished quantity.
• Close with the variance explained. production completions post accepted output to stock at standard value against the actual work in progress allocated. Work order cost entries hold material issues and returns, labour, overhead and scrap. A work order closes only when the residual variance is zero or the Finance Manager approves it.

Agree the bill of materials for each packed or assembled product, including planned scrap such as torn bags. Agree routing operations, labour rates and the overhead basis, whether none, per labour hour or per output unit. Set cost standards with their effective dates, and agree posting profiles for inventory, work in progress, production variance and scrap accounts. Decide who records production entries, who accepts them and who approves a close with variance.

A packing work order is released for a planned quantity of bagged cement. Materials are issued against the frozen components, which consumes their reservations. During packing, the operator records good quantity and scrap for torn bags, and the entry is accepted by someone other than the operator.

The completion posts fewer bags than planned. The standard output value is lower than the actual work in progress allocated, and the difference appears as a variance. The work order moves to pending close. The Finance Manager reviews the cost entries and approves the close, and the variance posts to the production variance account.

During the pilot, try to record output for an operation that is not the terminal one. It should not add to finished stock. Also try to close the work order with unexplained variance and no approval; the close should be refused.

• Work order schedule — work orders by planned start and end, with output product, planned quantity, manager and status.
• Stock by location — component stock and finished output in the production and storage locations.

• Work order to close: Release, issue, record, complete and close a packing work order.
• Dealer order to delivery: Packed output becomes stock that dealer orders can reserve.

Review the implementation plan before loading bills of materials.